U.S. markets rose after minutes from last month's Federal Reserve meeting suggested the central bank is looking for additional inflation before increasing interest rates. Volume remained moderate to light as many investors are weighing the odds of the markets advancing or declining. Short-term indicators are strongly bullish at the close, but most averages remain at or just below major resistance levels.
Todays S&P 500 Chart
U.S. oil futures rose Thursday, briefly topping $50 a barrel for the first time since July, as traders looked past immediate high supplies and focused on expectations of shrinking U.S. production. The Fed Minutes show that while the Fed saw key economic data as reaching market expectations, uncertainty on the global economy weighs on the Fed. Fed's Williams repeats he sees Fed liftoff warranted later in 2015.
WASHINGTON (Reuters) - The U.S. Federal Reserve thought the economy was close to warranting an interest rate hike in September but policymakers decided it was prudent to wait for evidence a global economic slowdown was not knocking America off course.
NEW YORK (Reuters) - Oil prices climbed to their highest in three months on Thursday after a closely watched oil forecaster predicted prices would climb to $75 over the next two years, adding to early gains notched after a rally in Chinese stocks worries about Syria.
(Reuters) - The S&P 500 and Dow indexes gained slightly and Nasdaq pared losses on Thursday after the Federal Reserve released minutes from its September meeting at which the U.S. central bank decided against raising interest rates for now.
PARIS (Reuters) - A union at Air France has called for a meeting with other unions at the airline on Tuesday to decide whether to go ahead with strike plans, its head Miguel Fortea told Reuters on Thursday.
Federal Reserve officials held off on raising short-term rates at their September meeting because of worries about when inflation would rise to 2% after running below that target for more than three years.
The 17 September 2015 meeting statement presented the actions taken. This post covers the economic discussion during this FOMC meeting between the members (minutes were released today). There was a significant amount of discussion when to raise the federal funds rate: The quote of these minutes was:
... most participants continued to anticipate that, based on their assessment of current economic conditions and their outlook for economic activity, the labor market, and inflation, the conditions for policy firming had been met or would likely be met by the end of the year. However, some participants judged that the downside risks to the outlook for economic growth and inflation had increased .....
The last few paragraphs below discuss in detail the "deer in the headlights" situation of when to begin to raise the federal funds rate.
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